Yields were pushed down to 3.1931 percent, after benchmark U.S. 10-year Treasury notes rose late in the day.

The positive U.S. economic data has bolstered U.S. Treasury yields, that has led to expectations of the Federal Reserve announcing multiple rate hikes over the next 12 months.

According to Michael Matousek, head trader at U.S. Global Investors said, "The S&P 500 is looking very weak and negative and that is putting fear into investors. With the markets going down people are increasing their allocation towards gold.

Meanwhile, the drop in U.S. stocks, the possible impact from Hurricane Michael in the U.S. and worries amongst traders over the impact of U.S. sanctions on Iran's oil supply caused oil prices to drop over 2 percent.